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Increased growth rate and improved results

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Readly AB presents a strong second quarter with full-paying subscriber growth of 29.7 per cent and the number of subscribers at the end of the quarter amounted to 420,135 (323,811). Revenue increased 32.8 per cent to SEK 110.8 million (83.4), and after adjustments for VAT and currency effects, revenue increased 35.2 per cent. Gross profit increased 38.4 per cent to SEK 37.3 (27.0) million and gross margin to 33.7 (32.3) per cent. Contribution margin improved to -10.4 (-27.8) per cent and operating result improved 8.7 per cent to SEK -54.3 (-59.4) million.

-  We continue to deliver on our strategy and report a strong second quarter with increased growth rate and improved results. While we continue to grow strongly, we also increased gross profit 38 per cent and despite investments in marketing being in line with last year we improved gross contribution margin to -10 per cent (-28). This shows the scalability and ability of our business model to create profitability over time. The performance in the quarter was, among other things, driven by continued execution on our partnership strategy as well as improved conversion. Looking back at Readly’s first four quarters as a listed company, we have consistently delivered in accordance with our financial targets and we are well positioned for continued good growth, says Maria Hedengren CEO of Readly

1 April -  30 June 2021

  • Revenue for the period totalled SEK 110.8 million (83.4), an increase of 32.8 per cent compared with the year-earlier period.
  • The number of full-paying subscribers (FPS) increased by 29.7 per cent to 420,135 (323,811) at the end of the quarter.
  • Gross profit increased by 38.4 per cent to SEK 37.3 million (27.0), corresponding to a gross margin of 33.7 per cent (32.3).
  • The gross contribution margin for the period was -10.4 per cent (-27.8).
  • Operating result was SEK -54.3 million (-59.4), corresponding to an operating margin of -49.0 per cent (-71.2).
  • Earnings per share were SEK -1.6 (-2.4) before and after dilution.

1 January - 30 June 2021

  • Revenue for the period totalled SEK 212.7 million (160.6), an increase of 32.4 per cent compared with the first six months of 2020.
  • The number of full-paying subscribers (FPS) increased by 29.7 per cent to 420,135 (323,811) at the end of the quarter.
  • Gross profit increased by 36.4 per cent to SEK 71.2 million (52.2), corresponding to a gross margin of 33.5 per cent (32.5).
  • The gross contribution margin for the period was -13.1 per cent (-12.1).
  • Operating result was SEK -111.2 million (-97.3), corresponding to an operating margin of -52.3 per cent (-60.5).
  • Earnings per share were SEK -3.2 (-3.7) before and after dilution.
     

Q2 presentation today at 9:00 CET
Readly AB published its interim report for the second quarter 2021 today on 12 August at 07:30 CET.
The report will be presented in an audio cast and tele conference at 09.00 CET today.
 
Maria Hedengren, CEO and Johan Adalberth, CFO, will present the report and answer questions.
The presentation will be held in English.

To listen to the conference by phone, please call:

SE: +46 856642703
UK: +44 3333009260
US: +1 6319131422 (US-PIN: 30801841#)

Follow the presentation live on:
Link to audiocast

Report and presentation will be available for download on:
https://corporate.readly.com/investors/financial-reports-and-presentations/

  
For more information, please contact:
Rasmus Blomqvist, Head of Investor Relations
+46 70 233 53 67, rasmus.blomqvist@readly.com

This information is inside information that Readly International AB (publ) is obligated to make public pursuant to the EU Market Abuse Act. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on 12 August 2021.

About Readly
Readly is the European category leader for digital magazines. The company offers a digital subscription service, that lets customers have unlimited access to 5,000 national and international magazines - all in one app and at a fixed monthly fee. Readly has subscribers in 50 countries and content available in 17 different languages. In collaboration with around 900 publishers worldwide, Readly is digitizing the magazine industry. In 2020, revenues amounted to SEK 353 million. Since September 2020, the Readly share is listed on Nasdaq Stockholm Midcap. For more information, please visit https//corporate.readly.com.

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